YOU CAN ONLY MANAGE WHAT YOU CAN MEASURE
Access to timely, accurate and meaningful management reports is critical to effective decision making.
Measuring Performance
Performance measures should include both quantitative (financial and non-financial) and qualitative data. Example of non-financial measures are units such as hours, volumes or relative terms such as ratios, percentages etc. Examples of qualitative measures include, staff morale, quality, customer satisfaction etc.
Key Performance Indicators (KPI's)
KPI's measure your success in the areas which are critical to your business. These are the things that make the difference between success and failure. Examples include :
- Sales per customer (for retail clients)
- Machine utilisation (for manufacturing clients)
- Staff productivity (for job costing/service clients)
- Occupancy rates (for motel/hotel clients)
KPI's should be SMART, Specific, Measurable, Attainable, Realistic, Timely.
They should be reported against budgets or industry benchmarks and reported upon regularly.
The benefits to you including being able to make an immediate assessment of performance and take corrective action where required.
Call us to arrange a meeting to create a meaningful set of measures for you.
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